For many years we got used to talking about international real estate in Portugal through a relatively simple map.
Lisbon, Cascais and the Algarve have received much of the attention and, more recently, Comporta has definitely entered this geography. But the numbers I have been following suggest that perhaps we are looking at a map that has already started to become outdated.
The Portuguese premium market continues to grow, but what I find most interesting is not just the price appreciation. It is understanding where it is happening. Funchal, Calheta, Vila Nova de Gaia, Grândola, Almada and other locations are starting to gain relevance that shows how demand is progressively distributed throughout the territory. There are very expressive annual valuations, over 14% in markets such as Funchal, Albufeira and Vila Nova de Gaia, while Grândola recorded an increase of more than 27%. More than the isolated numbers, it is important to understand the movement they reveal.
It would be easy to explain this evolution only through the prices of Lisbon or the more consolidated areas of the Algarve. Those who can no longer afford, or simply do not want to, pay certain amounts are looking for alternatives. But I think there is something deeper going on. The very concept of premium real estate is changing. Privacy, sustainability, energy efficiency, technology, nature and quality of life have gained weight in the decision. At the same time, different Portuguese regions have started to offer very different proposals to the same international market. The Algarve offers climate and proximity to the sea. Comporta combines nature, low density and exclusivity. Porto adds heritage, urban identity and culture. Madeira offers climate, landscape and a quality of life of its own.
This means that Portugal may be moving from having just a few international real estate destinations to having several markets with their own identities. And I consider this change particularly important. We do not need to create a new Lisbon in each region, nor transform all territories into a new Comporta. On the contrary, part of the value lies precisely in the difference and in the ability of each region to preserve what makes it attractive.
But this transformation also places responsibilities on municipalities and local decision-makers. When international investment begins to discover new territories, it is not enough to see the appreciation of real estate. It is necessary to think about infrastructure, mobility, services, planning, housing supply and the capacity to transform this demand into local economic development. Otherwise, we may only be left with higher prices without capturing all the value that the investment could generate.
Lisbon remains, however, competitive when compared to other major international markets. Prime segment values remain significantly below cities such as Paris, London or New York. But perhaps the most interesting story of Portuguese real estate is no longer just in the capital or in the destinations that have traditionally concentrated foreign demand.
The next cycle may be precisely the extension of this demand to different geographies, each with its own identity and value proposition. This can represent a huge opportunity for Portugal, as long as we know how to manage growth without destroying precisely what made these places attractive.
Perhaps we should, therefore, stop looking for the next Lisbon or the next Algarve. The real new map of Portuguese real estate may be a country with several international destinations, different from each other, but capable of competing in the same global market.